The Financial Authority of Singapore (MAS) and Financial institution Negara Malaysia (BNM) have collectively launched a real-time fee methods linkage connecting Singapore’s PayNow and Malaysia’s DuitNow.
This initiative builds upon the sooner QR fee linkage introduced on March 31, 2023, facilitating cross-border QR funds to retailers.
To mark the launch, MAS Managing Director Ravi Menon and BNM Governor Abdul Rasheed Ghaffour executed dwell cross-border fund transfers on the Singapore FinTech Competition.
The PayNow-DuitNow linkage permits instantaneous, safe, and cost-effective peer-to-peer fund transfers and remittances between the 2 international locations, in line with an announcement issued by MAS.
What makes it distinctive is that it’s the primary to incorporate non-bank monetary establishments from each nations, increasing entry to a wider consumer base.
Contributors embrace Liquid Group, Maybank Singapore, OCBC, and UOB from Singapore, and CIMB Financial institution Malaysia Berhad, Malayan Banking Berhad, and TNG Digital Sdn. Bhd. from Malaysia. DBS from Singapore and Hong Leong Financial institution from Malaysia will be a part of later.
Customers can ship and obtain funds of as much as S$1,000 or MYR3,000 every day utilizing the recipient’s cell phone quantity or VPA.
The service will roll out regularly, with Singapore clients of Liquid Group, Maybank Singapore, OCBC, and UOB gaining entry in phases till end-January 2024.
For Malaysian customers, CIMB, Maybank, and TNG Digital customers could have fast outbound service, with inbound service from Singapore to Malaysia beginning in December 2023, adopted by different monetary establishments.
The PayNow-DuitNow linkage outcomes from in depth collaboration amongst central banks, fee system operators, scheme house owners, and taking part monetary establishments in each international locations. It marks a major milestone in enhancing the associated fee, velocity, entry, and transparency of cross-border funds.
It aligns with the objectives of the ASEAN Cost Connectivity Initiative and the G20 Roadmap for Enhancing Cross-border Funds. In 2022, P2P and remittance transactions between the 2 international locations totaled S$2.3 billion/MYR7.8 billion.
Menon said, “The PayNow-DuitNow linkage is the fruits of a shared aspiration by Singapore and Malaysia to facilitate cross-border funds.”
BNM Governor Ghaffour stated the PayNow-DuitNow linkage permits each international locations to reap these advantages in the direction of their shared development and prosperity, whereas laying the foundations for scalable cross-border fee networks throughout and past ASEAN.
